Blonder Tongue acquires R.L. Drake for $6.5 million
R.L. Drake supplies electronic communications infrastructure for cable television systems, digital television reception, video signal distribution, and digital video encoding.
Blonder Tongue Laboratories, Inc. announced that it has completed the acquisition of the business of R.L. Drake, LLC. Both companies are suppliers of CATV and satellite signal processing and distribution equipment.
According to a financial press release, the acquisition was for the purchase of substantially all of the assets of R.L. Drake for a purchase price of approximately $6.5 million. The price isubject to certain adjustments based upon a post-closing audit of the balance sheet of R.L. Drake, and additional contingent purchase price payments of up to $1.5 million in the aggregate to be made over the next three years if certain financial results are realized.
"For many reasons a void has developed in the CATV industry leaving even the largest cable MSO's searching for companies capable of developing and delivering innovative new products," commented James A. Luksch, chairman and CEO of Blonder Tongue. "Blonder Tongue and Drake plan to fill that void by shortening the development and manufacturing cycle to deliver the most complete compliment of business and product solutions in our industry."
R.L. Drake's unaudited net sales for 2011 were approximately $10.0 million. The company supplies electronic communications infrastructure for cable television systems, digital television reception, video signal distribution, and digital video encoding.
All-digital hospital stays connected with Category 6 -- Programming for IT, telecom, and television systems running over twisted-pair cabling in the 110-bed Saint Clare's hospital facility in Weston, WI, came via satellite, with high-frequency signals traveling over coaxial cable from a dish on the roof to the headend located on the top floor. Blonder Tongue's equipment was used to remodulate the signals to lower-frequency RF channels, delivered over RG-11 cable to 20 ICs where Lynx hubs were located.Read Full Article >>>
Blonder Tongue provides system operators and integrators serving the cable, broadcast, satellite, IPTV, and institutional/professional video markets with systems for the provisioning of content contribution, distribution and video delivery to homes and businesses. The company designs, manufactures, sells and supports an equipment portfolio of standard and high definition digital video platforms, as well as core analog video and high speed data products for distribution over coax, fiber and IP networks.
To maximize customer support, both companies will continue to operate separate entities in two locations --Blonder Tongue in Old Bridge, New Jersey, and R.L. Drake in Franklin, Ohio, respectively.
"Continuing with our strategic plan, by maximizing synergies amongst our highly respected engineering, manufacturing and marketing teams, [as a result of the acquisition] customers will reap multiple benefits including additional new and innovative products delivered to market faster and more affordably," added Blonder Tongue's CEO Luksch.
For more information visit www.blondertongue.com.
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